Calculating the Benefits of Keeping Customers


 
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Calculating the Benefits of Keeping Customers
Heins
Hello all, I have a question which repeatedly pops up: where to invest your money: keeping customers or buying customers.
Measuring buying customer is easy. But how do we measure the benefit of customer retention (not just the save desk)? How to measure the lesser churn because of an activity on (part of) the customer base?
My feeling is that because keeping is difficult to measure (how can you proof that x customers stayed with your company rather than leaving as a result of your action) that most of funds typically, depending on markets, is spend on new sales.
Any help please?
 

 
Customers Keeping or Buying
Ahmed N. Qeshta
I invest my money in keeping my customers because the cost of buying customer are 25 times higher than keeping a customer....Sign up
 

 
My Customers Do Not Need Me
Larry S King, Student (University), United States, Member
It has been my experience that companies and/or company executives oft times forget who made them successful in their respective businesses.
Cust...Sign up
 

 
Not All Customers are Worth Keeping
Ethan Durda, Consultant, United States, Member
In general keeping customers (and happy ones at that) should be a primary focus of any organization, but that is not an absolute. In my consult...Sign up
 

 
Measuring the Benefit of Customer Retention
Andy Mellor
I work in a small co. Providing technical industrial services. We take the retention of term contracts very seriously. Calculating the value of ret...Sign up
 

 
Calculating the Benefits: Lifetime Value
Prashant Choudhari, United Arab Emirates, Member
It's been proven across industries that acquiring new customers takes as much as 5-7 times more efforts and cost than retaining existing one. There ar...Sign up
 

 
Difficult to Measure the Benefits of Loyalty
Niraj Kumbhat
Customers are having many options available nowadays. The days of monopoly have gone. Particularly in India, customers are price sensitive and are loo...Sign up
 

 
Customer Lifetime Value / Lifetime Value
Jaap de Jonge, CEO, Netherlands, Editor
I think Prashant is pointing in a valuable direction.
In the Customer Lifetime Value (CLV) concept, if a new (type of) customer cos...Sign up
 

 
Calculating Loyalty
Mrinal Ghosh, Business Consultant, India, Member
Loyalty can be calculated based on 3 metrics:
- Intention to continue
- Recommend the brand
- Continue using th...Sign up
 

 
Calculating CLV: Recommended Reading
Marcel Wiedenbrugge, Consultant, Netherlands, Member
To Heins: finding a right balance is always the trick. As a company you need to focus on both keeping your (profitable) customers, growing & keeping s...Sign up
 

 
Loyalty Cards May Help
Joseph , Director, Malta, Member
Such measurements are never easy because they are never on a ceteris paribus basis since, inter alia, t...Sign up
 

 
Losing an Customer is Losing Double
Magesh Kumar, Student (MBA), India, Member
To editor, I don't exactly know how to calculate CLV in absolute terms, but just want to share with you a thought that struck me with respect to the <...Sign up
 

 
Calculating Customer Loyalty
S Guin, Presales, India, Member
I completely agree with mr. Ghosh on this, assuming I am looking at service-industry, considering the fact that it is more or less oligopolistic with ...Sign up
 

 
Customer Loyalty helps to Survive Hars Times
Sindiso Coleman Dumulomo Tshuma, Manager, Zimbabwe, Member
Customer loyalty is very important to the well being and livelihood of the company. This is particularly true especially in the service industry such ...Sign up
 

 
Customer Loyalty
Joseph , Director, Malta, Member
One must not forget to mention the importance of interpersonal relationship; if there isn't one it must be created. Once created it must be nur...Sign up
 

 
Customer Value or Loyalty
Nagaraj.B.R
The contents are good and very responsive. But there is no specific method to measure customer loyalty or value....Sign up
 

 
Customer Loyalty Measurement
Marcel Wiedenbrugge, Consultant, Netherlands, Member
To Nagaraj: I think that the answer to this question is too complicated to answer in just a few lines. About calculating CLV:
1) We need t...Sign up
 

 
Customer Retention is Most Important to Make New Customer
MD Hafeez Ahmed, Consultant, India, Member
I am working on a special project of customer retention where I found keeping customer is very important. If a client switches to competive products, ...Sign up
 

 
Definition of Customer Loyalty
Tleli Makhetha, Business Coach, South Africa, Member
Marcel is correct, the answer is a little more involved.
1. A business has to first understand the critical success factors relevant to profit...Sign up
 

 
Customer is Always Loyal
Rajesh Sharma, Professor, Nepal, Member
It like believing the enemy. I.e. the customer will always be loyal towards us. To keep the loyalty, companies must regularly survey the customer need...Sign up
 

 
 


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